Correlation Between GE HealthCare and Ossiam Risk

Can any of the company-specific risk be diversified away by investing in both GE HealthCare and Ossiam Risk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GE HealthCare and Ossiam Risk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GE HealthCare Technologies and Ossiam Risk Weighted, you can compare the effects of market volatilities on GE HealthCare and Ossiam Risk and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GE HealthCare with a short position of Ossiam Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE HealthCare and Ossiam Risk.

Diversification Opportunities for GE HealthCare and Ossiam Risk

0.0

Correlation Coefficient

GE HealthCare  Ossiam Risk

Pay attention - limited upside

The 3 months correlation between GEHC and Ossiam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GE HealthCare Technologies and Ossiam Risk Weighted in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Risk Weighted and GE HealthCare is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GE HealthCare Technologies are associated (or correlated) with Ossiam Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Risk Weighted has no effect on the direction of GE HealthCare i.e., GE HealthCare and Ossiam Risk go up and down completely randomly.

Pair Corralation between GE HealthCare and Ossiam Risk

If you would invest (100.00) in Ossiam Risk Weighted on October 4, 2024 and sell it today you would earn a total of  100.00  from holding Ossiam Risk Weighted or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GE HealthCare Technologies  vs.  Ossiam Risk Weighted

GE HealthCare Techno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GE HealthCare Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ossiam Risk Weighted

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ossiam Risk Weighted has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ossiam Risk is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GE HealthCare and Ossiam Risk

The main advantage of trading using opposite GE HealthCare and Ossiam Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE HealthCare position performs unexpectedly, Ossiam Risk can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ossiam Risk will offset losses from the drop in Ossiam Risk's long position.

The idea behind GE HealthCare Technologies and Ossiam Risk Weighted pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.